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Dear All,

Please find attached the GOM Gazetted Notification dated 05.01.2017 amending the applicability of the Contract Labour Act. According to this amendment, the Contract Labour Act will now be applicable to every establishment employing 50 or more contract laborers.

Presuming that this Notification has not been posted on this site before, I am sharing it here.

To the Site Administrator/Moderators,

There is no suitable category for posting Government Notifications/Labour Law amendments, so I have selected the category "Employee Compensation & Benefits."

Thank you.

From India, Mumbai
Attached Files (Download Requires Membership)
File Type: pdf Contract Labour Amendment.pdf (63.1 KB, 1196 views)


What does the amendment state? Can you make the explanation simple for everyone to understand? Does this mean that for a particular company X, manpower of 40 in contract is supplied by company Y, so the 40 employees don't get benefits of ESIC and PF?
From India, Mumbai

Dear maglog1, This amendment states that contractor no need to take Labour License to work for any principal employer if contractor has the less than 50 manpower in the state of Maharashtra
From India, Delhi

So can anyone please confirm if an organization has three outsource agencies - X, Y, and Z? The number of contract laborers taken from each agency is as follows: X - 35, Y - 35, Z - 40. In this scenario, does the principal employer need to obtain an RC? This is because no individual contractor has provided more than 50 contract laborers.
From India, Mumbai

Hi Vaibhav,

As per the latest amendment circulated under the Contract Labour Act, the Principal Employer (PE) is liable to obtain the Registration certificate as the number exceeds 50. However, the license is not applicable to any of the above-mentioned XYZ contractors since these individual contractors do not exceed the maximum limit of 50 contract laborers in the last preceding year.

Regards,
Janardan

From India, Mumbai

if any PE starting his establishment employing less than 40 worksmen by contractor in this condition is the PE is labile to RC
From India, Pune

Dear Member, PE is not liable to have any RC under CLRA Act, 1970 as the no. is less than 50. R N KHOLA
From India, Delhi

We terminating one employee on intimidate basis but we paying compensation of 2 month salary. But question is whether deduct all deduction like PT, PF,Gratuity or not.
From India, Mumbai

I have workmen employees on contract at different locations such as Jaipur, Delhi, Bangalore, and Mumbai. My company is registered in Maharashtra. So, what will be the applicability - will it be for 50 workmen or 20? Or should each place with 20 employees be counted for the license as the principal employer?
From India, Mumbai

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